Marketing Mix of United Parcel Service (UPS) and 7Ps (Updated 2024)

The Marketing mix of UPS analyses the 7Ps of UPS, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of UPS. United Parcel Service is commonly known as UPS and is a public limited company of American origins. It is associated with the Transportation & Logistics industry and deals in freight and courier services. UPS was founded in 1907, on August 28, by its founder, James E Casey. Some of its competitors in the United States are as follows-

• United States Postal Service or USPS
• LSO
• OnTrac
• FedEx

Other international competitors are

• India Post
• Japan Post
• Royal Mail
• Deutsche Post
• TransForce

About United Parcel Service

• Type: UPS is a multinational package delivery business and supply chain management company.
• Industry: Transportation and logistics
• Founded: August 28, 1907
• Founders: James E. Casey and Claude Ryan
• Headquarters: Sandy Springs, Georgia, United States
• Area served: Worldwide
• Current CEO: Carol B. Tome
• Number of employees: Over 536,000
• Major Products: Package delivery, supply chain solutions, freight forwarding, and other logistics services.

UPS Product Strategy

The multinational corporation UPS delivers packages and offers supply chain and on-chain-management solutions.

The product-focused services mix of UPS (United Parcel Service) typically includes various services centered around package delivery and supply chain management.

The new Product Mix of UPS in 2024 is as follows (Source).

1. Parcel Delivery Services: UPS is primarily known for its domestic package and international parcel delivery services. This includes standard, expedited, and guaranteed day- and time-specific delivery options.
2. Freight Services: UPS provides freight transportation services for heavier goods including tl or truckload services. This includes air, sea, and ground freight, with options for less-than-truckload (LTL) and full-truckload (FTL) shipments.
3. Supply Chain & Logistics Solutions: UPS offers supply chain services, including logistics management, distribution, transportation, and warehousing solutions. This caters to businesses needing comprehensive supply chain management solutions.
4. E-commerce Solutions: With the growth of online retail, UPS has expanded its services to include e-commerce integration, providing tools and services for online retailers, such as shipping calculators, return solutions, and fulfillment services.
5. Specialized Shipping Services: This includes the handling and transporting sensitive or unique items, like hazardous materials, perishables, or high-value goods.
6. Technology Solutions: UPS offers various technology tools to enhance customer experience and efficiency. This includes tracking systems, shipping software, and integration services with customer systems.
7. International Trade Management Services: UPS also provides customs brokerage, trade consulting, and import/export services to facilitate international trade.
8. Financial Services: Some branches of UPS offer financial services, such as UPS Capital, which provides supply chain finance and insurance services to protect shipments and mitigate risk.
9. Mail and Document Services: Through UPS Store locations, UPS offers services like mail receiving, document printing, and postal services.
10. Sustainability Solutions: UPS has been focusing on sustainability, offering carbon-neutral shipping options and shipping solutions for sustainable logistics.

UPS Pricing Strategy

As a leading logistics and parcel delivery industry player, UPS employs a sophisticated pricing and marketing strategy that reflects its market position, service diversity, and operational excellence. This strategy is designed to balance competitiveness with profitability, ensuring value for both the customer and the company. Here’s a breakdown of the critical aspects of UPS’s pricing strategy:

1. Value-Based Pricing: UPS employs a value-based pricing approach, where prices are set based on the perceived value-added services to the customer rather than solely on the cost of service provision. This method acknowledges UPS’s premium service quality, reliability, and brand reputation.
2. Dynamic and Flexible Pricing: UPS’s pricing structure is dynamic, changing in response to various factors such as fuel costs, seasonal demand fluctuations, and market competition. This flexibility allows UPS to remain competitive while adjusting to external cost pressures.
3. Segmented Pricing Strategy: UPS practices segmented pricing, offering different rates for different customer segments, such as small businesses, large enterprises, and individual consumers. This strategy ensures pricing is tailored to each segment’s needs and value perception.
4. Surcharge and Accessorial Charges: UPS applies various surcharges and accessorial charges for specialized services and base rates. This includes charges for fuel, residential delivery, extended area service, and oversized packages. These additional fees allow UPS to cover specific service costs while maintaining a competitive base rate.
5. Competitive and Comparative Pricing: While maintaining its premium service stance, UPS closely monitors key competitors’ pricing strategies. This competitive pricing approach ensures that UPS remains in line with market expectations, adapting its pricing structure in response to competitors’ changes.

By integrating these diverse pricing strategies into global business, UPS effectively balances customer expectations with business sustainability, maintaining its position as a global logistics and delivery industry leader.

UPS Place Strategy

UPS is a global company headquartered in Sandy Springs, Georgia, United States. It started its journey from Seattle to Washington and, with time, has spread its network to include countries in most parts of the world, like Germany, Canada, the United Kingdom, India, China, and Japan. UPS’s forwarding and logistics unit offers services in nearly one hundred and seventy-five countries. In contrast, its International Package unit includes operations and deliveries in almost two hundred and twenty countries worldwide. UPS Airlines offers its services in nearly two hundred countries. Important hubs include Philadelphia, Illinois, and Louisville in the United States, Cologne in Germany, and Hong Kong in China.

Here’s the place strategy of UPS.

1. Global Network Coverage: UPS operates a vast global logistics network encompassing more than 220 countries and territories. This extensive reach enables them to provide reliable delivery services almost anywhere globally, catering to urban and rural areas.
2. Strategic Hub Locations: UPS strategically places its hubs and distribution centers in key locations worldwide. Major hubs, like the Worldport in Louisville, Kentucky, are positioned to optimize logistics efficiency and connect significant trade routes.
3. Local Presence through UPS Stores: UPS maintains a strong local presence through its UPS Store franchise network in the United States and similar retail outlets globally. These stores offer convenient access points for customers to send and receive packages, access printing and mail services, and get in-person customer support.
4. Advanced Technology Integration: UPS leverages advanced technology in its place strategy, utilizing automated sorting facilities, advanced logistics management systems, and drone delivery testing. This integration enhances efficiency in package handling and routing.
5. Sustainability Initiatives in Facility Operations: UPS focuses on sustainability in its operations, incorporating eco-friendly practices. This includes using alternative fuel vehicles and energy-efficient buildings and reducing carbon footprint in logistics operations, aligning with the growing demand for sustainable business practices.

UPS Promotion Strategy

UPS is an internationally acclaimed company that has set up various marketing strategies and activities to promote its brand visibility in the consumer market. Advertisement campaigns are displayed with the help of newspapers, television, billboards, and magazines for brand recall. Depending on the size of an order, UPS offers clients subscriptions, bulk services, and discount schemes. Its delivery vans promote brand awareness amongst its customers as they can reach far and wide places.

UPS recognizes the significance of social media platforms in its digital marketing strategy and offers service-related information via its website. Ad campaigns are also shown on its official website to increase brand awareness. The company encourages its employees to provide voluntary services as part of community activities.

UPS has made several sponsorship deals. It is the Official Logistics Partner of several athletics programs at the university and college levels. Since 2013, the logistics company has also become Scuderia Ferrari’s official logistics and shipping sponsor. Since 2014, UPS has become a sponsor of the golf tournament The Masters. Besides this, it is the Official Express Carrier and sponsor of another golf tournament, The Open Championship. The brand has appointed Lee Westwood as its brand ambassador.

Some Recent Video ads and Print ads for UPS are:

UPS People Strategy

The “People” element of the Service Marketing Mix for UPS (United Parcel Service) focuses on the employees, culture, and customer service that contribute to the company’s overall service delivery and customer satisfaction. Here are several critical points about the “People” aspect of UPS:

1. Employee Training and Development: UPS heavily invests in employee training programs to ensure that their staff is well-equipped with the necessary skills and knowledge to perform their duties efficiently. This includes safety, customer service, and logistics and operations training.
2. Customer Service Excellence: UPS strongly emphasizes providing excellent customer service. This includes responsive customer support, efficient problem resolution, and proactive customer communication regarding their shipments.
3. Employee Empowerment: UPS empowers its employees by giving them the autonomy to make decisions directly impacting customer satisfaction. This approach encourages a sense of ownership and responsibility among employees towards their work and the company’s success.
4. Diverse and Inclusive Workforce: UPS is committed to fostering a diverse and inclusive work environment where employees from different backgrounds and perspectives can thrive. The company believes that diversity fuels innovation and improves customer service.
5. Driver and Delivery Personnel: UPS’s drivers and delivery personnel are the face of the company for many customers. They are known for their professionalism, efficiency, and friendly service, which significantly contributes to the positive perception of UPS.
6. Leadership and Management: UPS’s leadership and management teams play a crucial role in shaping the company’s culture and guiding the workforce toward achieving the company’s goals. They are responsible for instilling the company’s values and standards among employees.
7. Employee Recognition Programs: UPS recognizes and rewards employees for their hard work, dedication, and contributions to the company’s success. This includes award programs, bonuses, and career advancement opportunities, which help to motivate and retain talent.
8. Commitment to Quality Service: The people at UPS are committed to upholding the company’s reputation for reliability and quality service. This commitment is reflected in every interaction with customers and the careful handling and delivery of packages.
9. Community Involvement: UPS employees are encouraged to engage in community service and volunteerism, reflecting the company’s commitment to social responsibility. This involvement helps to build strong community ties and enhances the company’s image.
10. Global Workforce: As a global logistics company, UPS employs a diverse workforce worldwide. This global perspective enables UPS to understand better and meet customers’ needs from different cultures and regions.

UPS Process Strategy

The “Process” element of the Service Marketing Mix for UPS (United Parcel Service) involves the methods and procedures used to deliver its services efficiently and effectively to customers. Here are several critical points about UPS’s processes:

1. Ordering and Shipping Process: UPS has streamlined the ordering and shipping process with user-friendly online tools and mobile apps, allowing customers to quickly ship packages, track shipments, and manage delivery preferences.
2. Logistics and Distribution Network: UPS operates a sophisticated logistics and distribution network that includes air and ground transportation systems, advanced sorting facilities, and technology-driven warehousing solutions. This network enables the efficient movement of packages globally.
3. Real-time Tracking System: UPS provides real-time tracking of shipments for both senders and recipients. This system offers transparency and peace of mind by allowing customers to monitor the progress of their shipments at every stage of the delivery process.
4. Automated Sorting Systems: UPS uses automated sorting systems in its hubs and distribution centers to sort packages quickly and accurately. This technology reduces human error and increases processing speed, critical for timely deliveries.
5. Delivery Optimization: UPS employs route optimization software to ensure delivery routes are as efficient as possible. This speeds up delivery times and reduces fuel consumption and emissions, aligning with sustainability goals.
6. Customer Service and Support: UPS offers various channels for customer service and support, including phone, email, live chat, and social media. This ensures that customers can receive assistance and resolve issues through their preferred method of communication.
7. Customs Clearance and International Shipping: UPS has streamlined the customs clearance process for international shipments. The company offers tools and services to help customers navigate the complexities of international shipping regulations, duties, and taxes.
8. Sustainability Initiatives: UPS has integrated sustainability into its processes, focusing on reducing its environmental impact. This includes using alternative fuel vehicles, carbon offset programs for shipments, and initiatives to reduce waste and energy consumption in operations.
9. Flexible Delivery Options: UPS provides flexible delivery options, such as UPS Access Point locations, where customers can pick up their packages conveniently. This process addresses the challenge of missed deliveries and enhances customer satisfaction.
10. Safety and Security Measures: UPS implements strict safety and security measures throughout its operations to protect packages and ensure the well-being of its employees. This includes rigorous training, security protocols, and the use of technology to monitor and manage risks.

UPS Physical Evidence Strategy

The “Physical Evidence” element of the Service Marketing Mix for UPS (United Parcel Service) refers to the tangible and intangible aspects that customers use to evaluate service quality before, during, and after delivery. Physical evidence shapes customer perceptions and trust in the UPS brand. Here are several critical points about UPS’s physical evidence:

1. Branding and Uniforms: UPS’s brown uniforms and delivery vehicles are iconic and serve as a solid visual representation of the brand. This consistent branding helps to build recognition and trust among customers.
2. Packaging Supplies: UPS provides branded packaging supplies, including boxes, envelopes, and labels, which not only ensure the safe transportation of goods but also reinforce the brand’s visibility and professionalism.
3. Customer Centers and Retail Outlets: UPS operates customer centers and authorized retail outlets where customers can drop off packages, purchase packaging supplies, and access shipping services. These physical locations are designed to be welcoming and efficient, reflecting the brand’s commitment to customer service.
4. Online Platforms and Mobile Apps: The UPS website and mobile app are integral to the customer experience, offering functionalities like shipment tracking, delivery schedules, and access to shipping tools. The usability and design of these digital platforms are part of the physical evidence that contributes to customer satisfaction.
5. Delivery Documentation: UPS’s delivery documentation, such as shipping labels, tracking information, and delivery receipts with electronic billing, offers customers assurance and evidence of the company’s thorough and reliable service.
6. UPS Access Point Locations: UPS Access Point locations, such as local stores and businesses that accept package drop-offs and pick-up services, extend the physical presence of UPS and offer convenience to customers, serving as a tangible touchpoint for the brand.
7. Vehicles and Equipment: The fleet of UPS vehicles, including bicycle delivery, delivery vans, trucks, and aircraft, showcases the company’s capability and scale. The condition and branding of these vehicles also reflect the company’s professionalism and reliability.
8. Customer Testimonials and Reviews: While not traditional, customer testimonials and reviews serve as physical evidence of the quality and reliability of UPS’s services, influencing potential customers’ perceptions and decisions.
9. Safety and Security Measures: Visible security measures at UPS facilities, including surveillance cameras and security personnel, provide customers with peace of mind regarding the safety of their shipments.
10. Environmental Initiatives: UPS’s commitment to sustainability, demonstrated through initiatives like carbon-neutral shipping options and alternative fuel vehicles, provides physical evidence of the company’s values and social responsibility, which can influence customer loyalty and brand perception.

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